Can a private individual lease a car?

For company cars, leasing has become the norm. But this solution also exists for private individuals.

With leasing, you pay a fixed monthly price for the use of an asset, such as a car, without actually buying it. The big difference with a loan that you pay back every month is that the asset remains the property of the leasing company. At the end of the contract, you have to return the car in good condition. In many cases, it is then possible to buy it back for a certain amount, what is known as its 'residual value'.

All Inclusive

The leasing amount includes all costs: registration and road taxes, insurance, maintenance, repairs, breakdown assistance and a replacement car. So there are no surprises. And if you choose an electric car, the placement of a charging point is often included, too.

Private individuals can also choose a leased car. But this is not very popular in Belgium. This could well change if more Belgians were given a mobility budget, i.e. a fixed amount that can be spent each month on a mobility solution. This budget would allow you, for example, to organise a leased compact car and an electric bicycle and choose the appropriate means of transport on a day-by-day basis.

About Ask Your Bank

At BNP Paribas Fortis, we want to help you gain a greater understanding of money matters, which is why we asked more than 1,000 Belgians what their main money-related questions and concerns are. With the Ask Your Bank series, we aim to make your life easier by addressing those matters in a fully transparent way: another example of Positive Banking.